Selling and Customer Service Training Pack

Sohailuddin ALAVI
International Trainer Adviser, AIBF (International Expert in Capacity Building and Institutional Development)

Author

March 2012

Selling and Customer Service Training Pack

Authors Profile

ALAVI, Sohailuddin
He is a capacity building and institutional development expert. He brings learning through working internationally for more than 28 years. Through the years he has unleashed skills in document writing, proposal development, critical thinking and creativity. His career spans over 28 years of learning In his initial career he has worked in a Pakistani bank as trainer, coordinator and training manager for management development programs for almost 15 years. Later he established his own institutional management and training consultancy. As consultant he has had conducted numerous management training workshops both in Pakistan and Afghanistan. Besides, he has had worked on many institutional development projects in the corporate, development sector and the Govt. departments, as consultant. He has taught for more than ten years in the undergraduate and post graduate programs of Shaheed Zulfikar Ali Bhutto Institute of Science and Technology, Faculty of Management Sciences and Karachi University Business School, Pakistan. He has written extensively in management, leadership, organizationbehavior; business ethics, and entrepreneurial development for professional magazines, authored books and training manuals.

Personal Contact Details: Email: sohailuddinalavi@yahoo.com Public Profile: http://pk.linkedin.com/pub/alavi-sohailuddin/44/ab4/997 Cell No. 00 92 (0) 333 213 87 42 Karachi, Pakistan

2 Author Sohailuddin ALAVI, Consultant and Instructor in Management

Table of Contents

Preface Section One: Sharpening Selling Skills i. ii. iii. iv. v. vi. vii. Check your Understanding Ice Breaker Profile of a Sales Professional Three Cs of Selling What do Businesses Sell Sales Discussions Overcoming Customer Objection Practicing Sales Discussions

01 03 04 08 10 11 12 16 17 20 21 22 25 26 28 29 30 31 33 35 36

Section Two: Customer Service Skills i. ii. iii. iv. v. vi. vii. viii. ix. x. xi. Customer Behavior Discover Customers Profile of a Customer Service Professional Where are the Customers Why Customers are Important What Customers Value Most What Must We Give to Customers How Customers Respond Communicating with Customers Winning Customers Case Study Managing Customer Relationships Case Study

Selling and Customer Service Training Pack

Preface

Selling and customer care are truly two pillars of doing business effectively. Customers provide humongous opportunities to the businesses thus it is imperative that businesses should strive to give value to their customers in return. Besides, emerging competition amongst businesses is now global. On one side foreign businesses are directly competing with local players and on the other side, local businesses can now reach out to their potential customers outside their conventional boundaries. In the above scenario, selling solutions and assuring quality customer care are the two key processes that help businesses develop their competitive advantage. Product quality is surely important but more important is the quality of sales and customer service individuals: those who are able to build stronger bonds with their customers, understand their real needs and expectations, and last but not the least strive honestly to serve them right come out as winners! This training pack introduces fundamental concepts and processes of selling and customer care in addition to building your skills in these critical areas. Learning is assured through reflective approach used in presenting the subject matter. This allows the training participants to able to visualize and validate the concepts and processes in their work context and get ample opportunity to practice the same for maximum internalization. I would like to dedicate this training pack to my parents, family, the Afghanistan Institute of Banking and Finance (Kabul), and the organizations and universities where I had worked, taught and studied. Sohailuddin ALAVI
March 2012

1 Author Sohailuddin ALAVI, Consultant and Instructor in Management

Selling and Customer Service Training Pack

Learn to think Think to Learn

2 Author Sohailuddin ALAVI, Consultant and Instructor in Management

Selling and Customer Service Training Pack

Section One Sharpening Selling Skills

Learning Objectives The purpose of this section is to sharpen your selling skills and to harness your potentials enabling you to improve upon your performance both for our personal and organizational growth In this section you will learn: 1. 2. 3. 4. 5. 6. What is selling? Why selling is important? Are you ready to sell? What are three Cs of selling? What you sell in bank setting? What is a better way to sell?

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Selling and Customer Service Training Pack

Check Your Understanding

Activity 1: Define Selling This activity will help each of us to define selling from a unified perspective. It is important to think alike because it will help us focus on one goal and to communicate effectively during this training session. You have 10 minutes to complete this activity in your group. 1. What is selling, as you look at it? No one is right or wrong, their definitions are different. __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________

2. What is your groups collective view of selling? [You can do this by listening to each others views on selling and then trying to reach on one definition that is acceptable to the group. __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ CONGRATULATIONS! Your group has done it. It is about time to select your representative. He or she should then present your groups views to rest of the class.

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Selling and Customer Service Training Pack

Activity 2: Why Selling is Important? List down reasons in favor of and against selling in a typical bank setting Yes selling is important because No selling is not important because

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Selling and Customer Service Training Pack

Activity 3: Are You Ready to Sell? We all sell in one way or the other. However, because selling has such a poor image, professionals dont like to think of themselves as salespeople. In this first exercise, we will examine some of the reasons why selling has a bad name. In the space below, please jot down an actual example of bad selling that has made you, as a buyer feel negative about the seller of the product.

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Selling and Customer Service Training Pack

Check Your Understanding Debrief

Selling is a process of exchanging benefits using products and services by focusing on our core competencies and in a manner that provides real value to the customers; builds stronger customer relationships; and, earns profit for the company through demonstrating honest, reliable and moral behaviors. Key Words: i. Exchange of benefits ii. Products and services iii. Core competencies iv. Customer value v. Customer relationship vi. Profit vii. Honest, reliable and moral behaviors Selling i. ii. iii. iv. v. is Important: Because everyone must sell to succeed Because it helps create awareness of our products and services Because it helps bring-in new customers and retain existing ones Because it helps promote business Because it is the prime source of profit

Readiness to Sell: i. Sales people are the bread earners in any business ii. Selling helps me stay in touch with people iii. By selling I can solve customers problems We Sell What Customers Value Most: i. Benefits that our products and services offer ii. Solutions to the problems and concern of our customers iii. Value for money How Best to Sell: i. Candor, Concern and Competence ii. Follow systematic process a. Build emotional rapport b. Investigate customer needs, expectations and eligibility c. Demonstrate products and services capacity d. Negotiate

e.

Be ready to serve the Customers right

7 Author Sohailuddin ALAVI, Consultant and Instructor in Management

Selling and Customer Service Training Pack

Profile of an Effective Sales Professional

Winning at a career in sales and customer care is no exception. To ensure a win, you must take a proactive approach. Prevention of failure is an important part of that process. If you find yourself saying, I'm not cut out for sales, I'm not pushy enough, I hate cold calling, I can't take the rejection, my boss is a jerk, or my boss is a real jerk, you are heading down the wrong path. Here are 19.5 recurring characteristics and traits of salespeople who thought they could hit a six in a sales career but who struck out in their attempt. Many of them stood with their bats on their shoulders, failing to swing at the ball as it passed them by . How many of these apply to you? 1. You don't believe in yourself If you don't think you can do it, who will? 2. You don't believe in your product Failure to believe your product or service is the best will show. Lack of conviction is evident to a buyer and manifests itself in low sales numbers. 3. Failure to set and achieve goals. Failure to plan Failure to define and achieve specific long-term (what you want) and short-term (how you're going to get what you want) goals. 4. You're lazy or just not prepared to make the sale Your self-motivation and preparation are the lifeblood of your outreach. You must be eager and ready to sell or you won't. 5. Failure to understand how to accept rejection They're not rejecting you, they're just rejecting the offer you're making them. 6. Failure to master the total knowledge of your product Total product knowledge gives you the mental freedom to concentrate on selling. 7. Failure to learn and execute the fundamentals of sales Read, listen to tapes, attend seminars and practice what you've just learned. Everything you need to know about sales has already been written or spoken. Learn something new every day. 8. Failure to understand the customer and meet his or her needs Failure to question and listen to the prospect and uncover true needs, including prejudging prospects. 9. Failure to overcome objections This is a complex issue. You are not listening to the prospect; you are not thinking in terms of solution; you are not able to create an atmosphere of confidence and trust suitable enough to cause (effect) a sale. People aren't afraid of failure; they just don't know how to get to success.

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Selling and Customer Service Training Pack

10. Can't cope with change Part of sales is change. Change in products, tactics and markets. Roll with it to succeed. Fight it and fail. 11. Can't follow rules Salespeople often think rules are made for others. Think they're not for you? Think again. Broken rules will only get you fired. 12. Can't get along with others (co-workers and customers) Sales is never a solo effort. You must team with your co-workers and partner with your customers. 13. Greediness Selling for commissions alone rather than helping customers. 14. Failure to deliver what you promised Failure to do what you say you're going to do, either for your company or your customer, is a disaster from which you may never recover. If you do it often, the word gets out about you. 15. Failure to establish long-term relationships

Trying to make commissions leads to failure through insincerity, failure by lack of service, failure to be motivated by anything but money.

16. Failure to understand that hard work makes luck Take a close look at the people you think are lucky. Either they or someone in their family put in years of hard work to create that luck. You can get just as lucky. 17. Blaming others when the fault (or responsibility) is yours Accepting responsibility is the fulcrum point of succeeding at anything. Doing something about it is the criterion. Execution is the reward (not the money). Money is just the byproduct of perfect execution. 18. Lack of persistence You are willing to take no for an answer and just accept it without a fight. You are unable to motivate the prospect to act or are unwilling to persist through the seven to 10 exposures it takes to make the sale. 19. Failure to establish and maintain a realistic attitude The first rule of life. The 19.5th characteristic that leads to sales failure: BTNA - Big Talk No Action Too busy bragging about the sales you're going to make and not busy enough making them. Failure is not about insecurity. It's about lack of execution. There's no such thing as a total failure. Failure is an event, not a person.

9 Author Sohailuddin ALAVI, Consultant and Instructor in Management

Selling and Customer Service Training Pack

Key professional selling principles

Three Cs of selling

Candor Be straight, be honest If you dont know, dont pretend No deceptions, no exaggerations

Concern Focus on your customers and their needs, not on yourself or your products/services Understand customer problems and why they matter.

Competence Know how your product and services meet customer needs Know how they solve customer problems

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Selling and Customer Service Training Pack

What Do Businesses Sell?

(Features/Benefits Analysis) Putting yourself in the shoes of a customer, you will realize that when they buy (pay for a product or service) they look for the value (solution or advantage). Thus it is important that we identify long list of benefits our products can offer to our potential customers. In doing so, we must be able to demonstrate the features as basis for the envisaged benefits. In the following activity, you will have a chance to identify the benefits and features of your products. You should do this by first looking at the features followed by identifying the benefits that each feature would lead to. Remember one feature can offer more than one benefit and different customers feel attracted to different benefits! Instructions: 1. Select and a few bank services/products that you sell in day in day out. 2. Think of (3) features of each service/product then determine customer benefits of each feature. PRODUCTS / SERVICES
1.__________________________.

PRODUCT FEATURES
____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________

CUSTOMER BENEFITS
____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________

2.__________________________.

____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________

3.__________________________.

____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ ____________________________

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Selling and Customer Service Training Pack

Sales Discussions
Selling involves communicating, persuading and negotiating with customers. Sales discussions generally go through four distinct stages. Remember the sequence is critical, but in a continuing customer relationship you may begin from a later stage. 1. OPENING: At the onset it is important to Achieve comfort level between the customer and yourself, and also Establish the purpose. So to say why is it necessary to engage in this discussion, particularly from the customers point of view? Without it you wont succeed to drive the discussion to making sales. Tips: Give customer your full attention - Welcome Customer, smile and make an eye contact and shake hands if convenient. - Exchange names, write down customers name and make sure customer knows your name. - Acknowledge customer visit, make customer feel good about visiting your bank. Think of an example from your work: ________________________________________________________________________ ________________________________________________________________________ 2. INVESTIGATING: Second is to uncover Customers needs and expectations. Need is the solution or usage value customer demands such as Loan compensates liquidity shortages in business. Expectations are the way solution is delivered such as time taken, convenience offered, and last but not the least service quality. Situation Qs. Situation questions are asked during the investigating stage - To uncover facts - To establish eligibility - To find more out about the customer Three rules for asking Situation questions: - Establish eligibility early [Dont wait until the end of the conversation to find that the customer doesnt qualify for the product or service s/he want]. - Avoid interrogation [Ask questions in friendly and conversational ways so the customer doesnt feel it is an interrogation].

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Selling and Customer Service Training Pack

Offer Alternatives [Dont say no to customer if s/he is not eligible. Whenever possible, look for an alternative product or service you could offer].

Overcoming Customer Problems / Difficulties [Structured questions can help you uncover customer needs problems and difficulties. And to determine how your product or services could help provide solutions to the problem or resolve difficulties of the customers] Focus on: Understanding customer needs Uncovering customer problems / difficulties Suggesting solutions / alternates

Remember our customers buy a product only if it solves a problem for them. E.g. Product / Service Solutions the product could provide to the customers Fixed Interest Deposit S/he can reduce uncertainty because s/he know in advance exactly what Term Deposit interest s/he will earn. S/he can get higher interest than from a savings account without any additional risk to Principal. Tips: Before you start discussion - Get the customer agree to your asking some questions. - Explain why and how the questions will help the discussion. Think of an example from your work: ________________________________________________________________________ ________________________________________________________________________ 3. DEMONSTRATING CAPABILITY: Third stage is about showing that you can meet the customer needs and expectations. This involves product or service suitability, banks capacity and your personal ability to deliver what your customer needs and expects. Think of an example from your work: ________________________________________________________________________ ________________________________________________________________________

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Selling and Customer Service Training Pack

4. NEGOTIATING: You have walked through a long way with your customer, it is about time to use your negotiating skills and get customers commitment. Negotiating is a process of giving to the customer what s/he values the most and securing from the customer what you value the most. Selling on the spot is ideal, but in many instances customers gain time before they buy. Getting a firm but soft commitment from the customer increases your chances of making the sale in the near future. Think of an example from your work: ________________________________________________________________________ ________________________________________________________________________

Remember: Like other discussions between people, sales discussions dont fit exactly into a neat formula. Although these stages are generally true, there are always exceptions.

14 Author Sohailuddin ALAVI, Consultant and Instructor in Management

Selling and Customer Service Training Pack

Quiz: Stages of Sales Discussion

Instructions: Read each situation separately and determine the Selling-stage described in each of the following situations. Encircle the right box: 1. A customer has come to the bank because her 12-month TDR has matured and now she wants to put the money into a 3-month TDR. Youve found out that she wants a short-term investment, since she expects to be making a major purchase and doesnt want her money tied up. You believe that a Savings-Plus Account would be better for this customer - but shes never heard of it - so youre explaining it to her. Opening Investigating Demonstrating Capability Obtaining Commitment

2. Youve been talking to a customer about moving money into a TDR account. Hes interested and clearly sees some advantages, but he seems hesitant. In response to your questions he explains that he feels he should discuss with his wife before he moves the account into your bank. Opening Investigating Demonstrating Capability Obtaining Commitment

3. A new customer has just opened a Savings Account with you. Just as shes getting up to leave she says, By the way, whom should I talk to about getting a car loan? Opening Investigating Demonstrating Capability Obtaining Commitment

4. You have just taken a customers loan application. When you mentioned electronic banking he seemed very interested and now youve developed a clear need, so youre describing electronic banking in more detail. Opening Investigating Demonstrating Capability Obtaining Commitment

5. A customer has come to your desk complaining about the bank bouncing his checks. He says that his checkbook shows a positive balance. Opening Investigating Demonstrating Capability Obtaining Commitment

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Selling and Customer Service Training Pack

Overcoming Customer Objections

Group Activity 1 Instructions: - Phrase questions that you should ask to your prospective customers to uncover their needs. Then select a product that might resolve customer specific problems / difficulties. ILLUSTRATION Overcoming customers problems / difficulties: Are you worried that you could lose money Do you find it difficult to do your banking because interest rates are fluctuating? only during regular banking hours?

Fixed interest rate investments could help solve this problem. Customer: House Wife / Retired Individual Question

ATMs. / Credit Cards Could help resolve this difficulty.

Solution

Situation Two: Small Business Person Question Solution

Situation Three: Corporate Executive Question Solution

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Selling and Customer Service Training Pack

Practicing Sales Discussion

Role Play Activity

Roles: One person plays the Customer, one person plays the Seller. Others observe and comment afterwards. Customer Description: Customer really needs to put money into a high interest bearing account, and s/he not sure what type of account to open. S/he has only been banking here for a month, so s/he a little nervous about discussing his/her finances with a stranger. Instead, s/he has decided to open a savings account even though s/he knows its not what s/he should be putting her/his money into. Instructions: Indulge your selves in the sales discussion, following typical stages. The seller [banker] has a task to make the customer have trust on him/her, uncover facts about the customer needs and difficulties, offer a practical solution to the customers problem, and negotiate a firm commitment from the customer. Others watch carefully and comment at the end, starting with what went right then what could be have been done even better, and finally what went wrong.

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Selling and Customer Service Training Pack

Sellers Brief
Instructions: The person playing seller must read through this brief and follow. It explains his or her position. Youve been talking to a customer who wants to open a checking account. At first the customer seemed nervous, but has clamed down as you moved through the opening stage. You think that some other products beside a savings account might be more appropriate, so now youre going to ask permission to ask some questions. What the Seller (you) already know: i. Customer wants to open a checking account. ii. Customer recently took a new job located near this branch. That is why our checking account would be convenient. Sellers (your) Goal: Plan the discussion [Questions you should ask] - To make customer comfortable with you asking questions - To make sure you uncover all the facts listed in the Customer Brief. - To identify the right product / service that solves customer problem. - Negotiate a firm commitment from the customer Remember, if you ask right questions then the customer would reveal the following facts: S/he has a checking account and a saving account at a bank near his/her home

S/he has several Certificates of Deposit with this other bank.

S/he has been using this other bank for many years and dont plan to move his/her accounts unless there is a very clear advantage to doing so.

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Selling and Customer Service Training Pack

Customers Brief
Instructions: The person playing customer must read through this brief and follow. It explains his or her position. What the Seller already knows: i. You want to open a checking account. ii. You recently took a new job located near this branch. That is why our checking account would be convenient. What you might reveal if the Seller asks the appropriate questions. Do not answer unless the seller asks the right question.

You have a checking account and a saving account at a bank near your home

You have several CDs with this other bank.

Youve been using your present bank for many years and you dont plan to move your accounts unless there is a very clear advantage to doing so.

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Selling and Customer Service Training Pack

Section Two

Customer Service Skills

Learning Objectives The scope of this section is to help your increase your competence in customer service. In this module you will learn: 1. Who is a Customer? 2. Why Customer Service is important? 3. Customers are Humans just like you and me. 4. Are you ready to Serve Customers? 5. Where are the Customers? 6. What Customers value most? 7. What must we give to Customers? 8. How Customers respond to our service? 9. What to Say and how to Say it? 10. How to keep up Good Service 11. How good am I at Customer Service?

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Selling and Customer Service Training Pack

Customer Behavior
What is Behavior? Behavior is a set of mental, emotional, and physical activities that people engage in when selecting, purchasing, using, and disposing of products and services so as to satisfy their needs, desires and expectations.

Seven Keys to Customer Behavior Is instrumental. Includes many activities. Is a process. Varies in timing and complexity. Involves different roles. Is influenced by external factors. Differs for different people.

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Selling and Customer Service Training Pack

Discover Customers
Activity 1: Who is a Customer? This activity should help each of you to redefine customer from a practical perspective. It is important to think alike because it will help you focus on one goal and to communicate effectively during this training session. You have 10 minutes to complete this activity in your group. 1. Who is customer, as you look at it? No one is right or wrong, their definitions are different. __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________

2. What is your groups collective view of customer? [You can do this by listening to each others views on selling and then trying to reach on one definition that is acceptable to the group. __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ __________________________________________________________________ CONGRATULATIONS! Your group has done it. It is about time to select your representative. He or she should then present your groups views to rest of the class.

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Selling and Customer Service Training Pack

Activity 2: Why Customer Service is Important? List down reasons in favor of and against Customer Service in a typical business setting
Yes Customer Service is important because No customer service is not important because

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Selling and Customer Service Training Pack

Activity 3: Are You Ready to Serve Customers? We all do customer service in one way or other. However, because it has such a poor image, professionals dont like to think of themselves as customer service persons. In this first exercise, we will examine some of the reasons why customer service has a bad name. In the space below, please jot down an actual example of bad customer service that made you, as a customer, feel negative about customer service.

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Selling and Customer Service Training Pack

Profile of a Customer Service Professional

A successful Customer Service Professional Believes in the Customer Knows the job well Does the job well Has helping attitude Considers the job worthy and meaningful Is polite and a good listener Carries a business like personality Believes in surprising customers Always walk an extra mile

Mini Exercise: Think of an example for each of the above quality: 1. __________________________________________________________________ 2. __________________________________________________________________ 3. __________________________________________________________________ 4. __________________________________________________________________ 5. __________________________________________________________________ 6. __________________________________________________________________ 7. __________________________________________________________________ 8. __________________________________________________________________ 9. __________________________________________________________________

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Selling and Customer Service Training Pack

Where are the Customers?

In the following activity you are asked to visualize your business as your customers see it. Please complete this activity in 45 minutes. This style of analysis is often difficult, but can produce some very good insights to know who the key customers are and what they value? Instructions: 1. You are asked to complete this activity together with your group. 2. Follow the rules: First listen to everyone. No voting, everyone must agree. Let one of yourself work as group coordinator. The story presented below will provide you some useful hints in defining your business from your customers view point. Picture-the-Scene: A tired, scruffy, disheveled executive arrives home from yet another trip away on business. His youngest child appears and screams at the stranger before him. His dog arrives and bites the ankle of his forgotten intruder. The Message: Avoid travelling instead use the phone, the fax, the telex, the conference call, the electronic mail system and regain your quality of family life. Message: The context of above story is that the Airliners, Railways, and Telephone companies are direct competitors in the communication business, for people use all of them to communicate.

Please use your creative thinking in answering the following questions: Products we sell to the customers... ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Services we provide to the customers... ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Our core business is... ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

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Selling and Customer Service Training Pack

Our competitors are...

________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Our permeable industry is.... ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ Our customers are.... ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________ What our customers value.... ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

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Selling and Customer Service Training Pack

Why Customers are Important?

In the following activity you are asked to work out as many reasons as you can to highlight the significance of Customers in the business. 1. I think customers are important because....

2. Good job done. Now you go to your group and compare your list with other members. Hopefully, you would like to add a few more reasons at this point.

3. Discuss your ideas with rest of the class and make a final list of your ideas.

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Selling and Customer Service Training Pack

What Customers Value Most?

In the following activity you are asked to explore what Customers value most. Please complete this activity in 20 minutes. Instructions: 1. You are asked to complete this activity together with your group. 2. Follow the rules: First listen to everyone. No voting, everyone must agree. Let one of yourself work as group coordinator. Enlist in what ways your product or service can benefit your customers? ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________

Identify features of your product or service that benefit your customers ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________

Short list the features and their benefits that your customers generally look for [demand]. ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________ ___________________________________

How can it benefit you, if you know what customers value most? ________________________________________________________________________ ________________________________________________________________________ ________________________________________________________________________

29 Author Sohailuddin ALAVI, Consultant and Instructor in Management

Selling and Customer Service Training Pack

What Must We Give to Customers?

This activity is in continuation of the previous activity where you focused on What Customers Value Most By using your learning in the previous activity you should be able to list down some important expectations [positions] of your customers and identify the solution [interest] you should provide to them.

Position Dont want to exceed my budgets. I should get what I paid for. Dont want to stand in the line for long.

Interest
I should get something at affordable price.

It should be a good service, always. It should be quick.

1. ________________________________ 2. ________________________________ 3. ________________________________ 4. ________________________________ 5. ________________________________

1. _______________________________ 2. _______________________________ 3. _______________________________ 4. _______________________________ 5. _______________________________

What principles of Customer Service would you drive from this activity? Choose from the list below that you think are most practical principles. Always give what they ask for Always empathize with customers Always offer best product/service Always focus on their interests Always try giving best quality product/service Always respond to their specific needs and exceed their expectations

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Selling and Customer Service Training Pack

How Customer Respond?

In the following activity you will identify at some of the usual RESPONSE-BEHAVIORS of the customers to the service they receive. Please follow the sequence: 1. PLEASE RECALL AN INSTANCE, WHEN SOMEONE, SOMEWHERE, HAD SERVED YOU LIKE NO ONE HAD EVER DONE BEFORE.

How you felt about the person and the service you received? 100 75 50 25 How did you feel about the person and the service same second time? 100 75 50 25 How did you feel about the person and the service later? 100 75 50 25

00

00

00

SCALE: 100 - 76 Delighted; 75 - 51 Satisfied; 50 - 26 Indifferent; 25 - 00 Id never come again

2. DRAW YOUR PERSONAL PATTERN OF HOW YOU FELT...

Please encircle (X) that represents your score above.

again First Time. Second Time. Later Times. Delighted Satisfied Indifferent Id Never come

X X X

X X X

X X X

X X X

3. MAKE A CONCLUSION... __________________________________________________________________

__________________________________________________________________

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Selling and Customer Service Training Pack

Tips for Keeping Customers Happy

DO IT NOW...DO IT AGAIN...DO IT ALWAYS...

MAKE EVERY CUSTOMER FEEL THAT SHE/HE IS VERY IMPORTANT PERSON FOR YOU BY: ALWAYS GREETING EVERY CUSTOMER WITH A SIMILE ASKING TO EVERY CUSTOMER HOW CAN YOU HELP THEM; SHOWING INTEREST IN EVERY CUSTOMERS PROBLEMS; LISTENING TO EVERY CUSTOMER WITH ATTENTION; CORRECTLY ANSWERING TO THEIR QUESTIONS; TRYING YOUR BEST TO SATISFY EVERY CUSTOMER; COOPERATING NOT COMPETING WITH YOUR CUSTOMERS; LIVING UP TO EVERY CUSTOMERS EXPECTATIONS; STANDING BY YOUR PROMISES YOU MAKE TO EVERY CUSTOMER.

THOUGH IT IS DIFFICULT BUT WITH AN EFFORT AND CONSTANT LEARNING YOU CAN SUSTAIN YOUR CUSTOMERS RESPONSE TO YOUR ADVANTAGE.

32 Author Sohailuddin ALAVI, Consultant and Instructor in Management

Selling and Customer Service Training Pack

What you say and how you say it can have a tremendous effect on your Customers Did you know this? It's a fact that the average human being has 135 different needs! If you were asked to complete a list of those needs you would probably come up with between 12 and 20. That means there would be about 115 needs you couldn't identify! So, what is a need? A need is an unsatisfied desire, eating away at the inside of your customer, wanting fulfillment. When their needs are not being met, they will find somewhere else to buy. That's why it's paramount to treat their many needs with respect, dignity and promptness - We all will always go back to a place where somebody makes us feel good. So, our mission should be: Make customers feel good Create a phenomenal database of customers Offer an exceptional referral system Understand that needs satisfaction is vital to all business success. Behaviorists tell us that the #1 strongest of all human needs is the need for recognition. The need to know that we occupy a valuable space on the face of the earth is real. We need to know we are valuable, worthwhile human beings. When we make people feel of value, they bond to us, automatically. Lets use the term "Stroking" for making people feel of value. Strokes are units of recognition. Different sorts of "strokes" you can deliver to your customers are: 1. Ritual strokes "Good morning", "Good seeing you". 2. Mail strokes Cards, memos, thank you notes that make people feel very, very special. 3. Phone strokes People appreciate the fact that you are concerned enough to give them a call, particularly when it is not business related. 4. Time strokes Giving customers time and listening to them gives them a great feeling of selfworth. 5. Talk strokes Maybe we should rename this LISTENING strokes. Listening is the highest compliment you can pay to a person.

Communicating with Customers

33 Author Sohailuddin ALAVI, Consultant and Instructor in Management

Selling and Customer Service Training Pack

6. Touch strokes Shaking hands will always make the customer feel welcome. 7. Positive strokes This is the warm feeling generated from one person to another when you say something nice:

"Its really nice to see you again". "Your choice is our first priority".
And, always remember, exceptional human beings never devalue others - not even in jest! Lastly, and most importantly, don't discount someone when they give you a stroke. Practice just saying, "Thank you very much, I appreciate it!" It will make the both of you feel better.

34 Author Sohailuddin ALAVI, Consultant and Instructor in Management

Selling and Customer Service Training Pack

Winning Customers
Mini Case Study FACTS: Your branch has an annual turnover of AFS.100.0 Million, with its customer-base of 4000 individual and corporate customers. Most of the customers have been with the branch for more than 5 years. Of late, however, the branch is experiencing loss of its customers to its competitor down the road, at an average of 20% annually. To cope up with the situation, the management had initially established Marketing Group with the sole purpose of bringing in new customers to replace the lost ones. The group has been given annual budget of AFS.500,000/- for the task. However, the management is fully committed to stop further drain of its customers. TASK: 1. 2. 3. 4. Calculate the potential loss of revenue to the branch when it losses a customer. Estimate average cost of replacing every lost customer. Determine how much a dissatisfied-customer will cost to the branch. Tabulate total loss to the branch due to annual loss of customers.

INSTRUCTIONS: You are a select member of the task force, especially created to stop further loss of worthy customers to the competitor, hence maintain branchs profitability at an average. In the subsequent meeting, you are invited to make a presentation on the following aspects of the problem: What could be done to stop customers from moving to the competitors business? How could customers loyalty be improved upon? How best could customers be served?

35 Author Sohailuddin ALAVI, Consultant and Instructor in Management

Selling and Customer Service Training Pack

Managing Customer Relationship Case Study

You are pretty concerned to boost your branchs profitability, for now your career prospects are directly linked with your branchs profit performance. Above all, persons sitting in the Business Planning and Development Division have recently observed that focusing upon the overall branch operations does not provide valuable insights for managing profits in todays TRICKy environment. Now, therefore, branches need to manage individual customer relationships against a target Return-on-equity. A format has been specifically developed to aid the branches to periodically conduct analysis of customer relationship and determine whether each customer-relationship is yielding target return-on-equity or not. And based on such analyses, generate data for managerial action. Managing Return-on-equity now-a-days require managing Customer-relationships, for it is the customers on whom we depend for our profits (R.O.E.). This exercise is about evaluating customers relationship to find out if it is profitable or not. Data: M/s. Colors of Beneton, a garment store, have been maintaining their relationship with your branch ever since they were established in 1993. On the whole the relationship is mutually beneficial.
Monthly Average Account Balances: - Checking Account (Current) - Checking Account (Savings) - Term Account - Over Draft Facility (O/S). - L/C. Margins. - Five Years Term Loan. Other Transactions: - Remittance Business. - L/C. Trans. - Others. Interest / Markup Rates: - Checking Account (Savings) - Term Account - Over Draft Facility (O/S) - Term Loan. Other Charges: - Remittance. - L/C. Trans. - Commitment Fee. Misc. Information: - Bank Equity - Target Return On Bank Equity Rs. Rs. Rs. Rs. Rs. Rs. 200.000,00 100.000,00 500.000,00 100.000,00 150.000,00 1000.000,00

Rs. 5.000,00 Rs. 1.000.000,00 Rs. 3.000,00 7.00 % P.A. 12.00 % P.A. 18.00 % P.A. 20.00 % P.A. 5.00 % 3.00 % 2.00 % 08.00 % 20.00 %

36 Author Sohailuddin ALAVI, Consultant and Instructor in Management

Selling and Customer Service Training Pack

Assignment: 1. The approach is definitely different, but with little efforts you can master it to your advantage. 2. You are asked to carefully read the information given above and the annexed CPA-Format. 3. Compete the format with the help of information given above. 4. Do the Customer Profitability Analysis. 5. Give your options to improve profitability by modifying the customer relationship. 6. Look for encouraging forces and try circumventing the usual constraints on your actions. 7. You will be able to complete this whole exercise in less than 45 minutes.

37 Author Sohailuddin ALAVI, Consultant and Instructor in Management

Selling and Customer Service Training Pack

Customer Relationship Profitability Analysis

(Template) Sources and Uses of Funds... 1. Average Loan / Finance Balances: ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ Average Deposit Balances: ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ Less Reserve Requirements @ XX % Total Loanable Funds. (Total of 1 Minus Total of 2) _____________ 3. Banks Funds Used by Customer: - Total Average Loan Balance. - Less Total Loanable Funds. - Gross Bank Funds Used. - Allocated Bank Equity. ( XX % of GBFU) - Funds Transferred from Pool. ( GBFU - ABE)

__________ __________ __________ __________ __________

__________

2.

__________ __________ __________ __________ __________ __________

__________ __________ __________ __________ __________

Income and Expense Analysis... 1. Income Earned: a) Gross Interest / Markup Income on Loans b) Earnings on Deposits (XX % of TLF.) c)Fee Charged; __________________________________ __________________________________ __________________________________ Total Income (a+b+c) __________ __________ __________ __________ __________ __________

38 Author Sohailuddin ALAVI, Consultant and Instructor in Management

Selling and Customer Service Training Pack

Page 2 2. Gross Expenses: a) Profit / Interest Accrued on Customer Deposits - Time Deposit (XX %) - Checking Account(s) (XX %) b) Cost of Bank Funds Used - Allocated Bank Equity (XX %) - Pool Funds Used (XX %) c) Allocated Branch Overhead (XX % of Total Branch Overheads) Total Expense (a+b+c) 3. Net Return a) Total Income b) Total Expenses 4. Profitability Analysis Return-on-Equity (Also Referred to as Allocated Capital Index): Net Income / Allocated Bank Equity: __________ / __________ = _____% __________ __________ __________

__________ __________ __________ __________

__________

__________ __________ __________

39 Author Sohailuddin ALAVI, Consultant and Instructor in Management